Total output increased by a feeble 0.1% in April, way down from March’s +1.5%
Despite the measly growth, the ONS stats for April 2026 mark the third consecutive month of growth.
This suggests that the sector is stabilising, rather than accelerating, which, while still not the best news, will come as a relief to many.
Contraction avoided, but growth is sluggish
The driver for April’s growth is Repair and Maintenance output, which grew by 0.6%. New work, on the other hand, fell by 0.3%, indicating that growth is coming from maintenance of existing structures rather than beginning new projects.
More positivity can be found in the three months to April, in which output increased by a more impressive 1.6%, and is the second consecutive three-month increase. It suggests that the industry is showing resilience in the face of increased pressures.
Over the three-months, non-housing repair and maintenance increased by 3.5%, and six of the nine sectors recorded growth in the same period, as private new housing, private industrial new work, and public non-housing repair and maintenance.
It remains worrying that private new housing continues to struggle given the government’s continued drive to build 1.5m new homes.
The latest ONS stats for April 2026 can be read in full here.
“The conversation is rarely about demand”
Some reactions from industry and thought leaders follow:
Neil Leitch, managing director of development finance at Hampshire Trust Bank, said: “A fall in private housebuilding will not come as any great surprise to those working across the sector. Just last week, S&P Global’s latest construction PMI showed the sector shrinking at its fastest rate in six years, which reflects the pressure developers are still working through across the market.
“When I speak to developers, the conversation is rarely about demand. Demand is there, but what’s missing is confidence. Developers are making long-term decisions whilst dealing with planning uncertainty, tighter viability and less flexibility once projects move into delivery, so it is little wonder output has slowed.
“The planning delays that have plagued the industry for years are still there, but now there is the added issue of unpredictability. Outcomes can vary significantly between authorities, and even well-prepared schemes can face uncertain timings and inconsistent decisions. That inevitably makes developers more cautious about how and when they commit capital. We are seeing developers place far greater emphasis on deliverability and realistic assumptions before schemes move forward.
“Land expectations have not always adjusted to reflect changing market conditions either, which means margins remain finely balanced across many schemes.
“We also need to remember that today’s output reflects decisions made months or even years ago. The bigger question now is what current conditions mean for the pipeline of schemes coming through tomorrow.
“In a market like this, certainty becomes increasingly important. Well-structured schemes supported by consistent capital and direct access to decision-makers are better placed to maintain momentum through delivery.”
Clive Docwra, managing director of property and construction consultancy McBains, said: “Growth of 0.1% in April is proof of the industry’s resilience in the face of ongoing economic and geopolitical uncertainty. But the fact that growth came from repair and maintenance work, with new orders falling, is evidence of a difficult few months ahead.
“After March’s figures were better than expected, contraction in April was perhaps inevitable as inflationary pressures kick in and fuel and energy costs clearly start to bite in earnest from the continued closure of the Strait of Hormuz. With the ongoing uncertainty in the Middle East on top of domestic worries, caution remains as regards to the longer-term outlook.
“And now hostilities are also simmering again after the April truce ended, this will only add to industry concerns.”
Richard Cook, senior director of economics at Pegasus Group, said: “With a further increase in construction output now confirmed in April, the construction industry has proven its robustness in the face of both domestic and global instability.
“This month’s figures are the first to seriously reflect the impact of the conflict in the Middle East, making the construction industry’s resilience in the context of a wider economy under pressure especially striking. While we can’t afford to be complacent – decreases could still be on the cards for future months – these figures provide a much-needed tonic to the doom and gloom that has otherwise dominated discussions in and around the sector.
“Problems do inevitably remain, as construction continues to grapple with high costs, mounting insolvencies, and chronic skills shortages. The mood amongst housebuilders remains cautious and many are cutting back on land acquisitions as a result. However, there are further positive developments on the horizon. The government’s response to the draft NPPF consultation is now anticipated ahead of the summer recess and if effectively implemented, should be instrumental in speeding up the planning process and boosting delivery: in turn making the government’s ambitious 1.5 million homes target more feasible.
“Furthermore, the recent announcement of £96 million to fund regional placements for aspiring construction workers is equally welcome, and a much-needed step towards plugging the skills gap in the sector. Although it will take time for this new generation to reach the construction labour pool, the challenging graduate jobs market and the industry’s immunity against job losses to AI make it increasingly attractive to the workforce.
“Compared to some of our European neighbours, the UK is weathering the effects of global instability relatively well. Unemployment may be at 5% in the UK, but it is over 8% in France, where the threat of a recession is mounting. Building on the green shoots shown in these figures, housebuilders now need to get their applications in the planning system. If the construction industry can lead the way and deliver, this could offer a transformative boost to the wider economy.”
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